Frustrated Home Buyers, Rejoice: 4 Ways the Market is Changing
Those that have been watching the housing market for the last few years have seen a trend that has turned many home buyers away from trying to make a purchase. The market has been a seller’s market and a somewhat hostile for the buyer. Most home buyers could not even schedule a showing in a house before it had been sold, they were caught in constant bidding wars, and houses were starting at astronomical prices.
But, the tides may be turning to favor these frustrated home buyers.
More Houses For Sale
A huge problem with the market was the serious lack of homes for sale. There were many home buyers waiting for houses to hit the market only find themselves learning about homes after they had already sold. As soon as a good house was on the market a buyer would swoop in and make an offer the seller could not refuse.
In the slower seasons, buyers may not have found any properties, at all. Most areas see a lull in house sales in the winter. This recent winter, the nationwide housing market saw the lowest level of inventory ever seen. Even though that discouraged many buyers, there will be more houses hitting the market in the upcoming year.
The problem with the homes that are going up for sale is the price. The areas that are seeing the greatest increase in their number of homes for sale are also very expensive markets. This means that there may be plenty of houses to choose from but most buyers cannot afford their price point.
Markets that have a more reasonable price range are seeing less of a decrease in the houses for sale. While their numbers are not rising as rapidly, the market is making a change for the better. Hopefully, this trend will continue to get even more reasonably priced homes on the market.
Prices Evening Out A Little
Home buyers that have watched the prices of homes drastically rise in the last year may notice a slight decrease in this trend. However, prices are still going to increase. They are just increasing somewhat slower than they had been before, coming in at almost three percent less than in recent years.
Good Time to Secure a Mortgage
Throughout the last year, the interest rate on mortgages was increasing and making many buyers panic. This increase has plateaued around five percent in many areas. While many people expected these interest rates to continue moving up they actually are moving back down.
Even though the rates are higher than in the last few years, they are still historically low for the market. Lower interest rates give more buyers the opportunity to get a mortgage and make a purchase. These low rates may not continue, but for now, buyers can reap in the benefits a lower rate when securing their mortgage.
The Rent Is Too High
Many buyers have seen the competitive world of real estate and decided to continue renting. The problem is the fact that rent rates are still increasing. Paying more in rent is not only discouraging for many would-be buyers it is also impossible for many who already struggle to pay their rent.
The housing market has been favoring the seller for a long time. While the market is not completely changing over to a buyer’s market it is becoming much easier for a buyer to navigate.
The worry of interest rates increase has subsided, for now. Buyer’s have motivation to stop renting and buy a property. The prices of homes are not rising as much. And there are more homes being put on the market. All in all, the winds are blowing in the direction of home buyers.